Return on Investment
What is the Return on Investment of an O2Compost System?
When I talk with people who are considering an O2Compost System, I am often asked the question, “What’s the return on investment?” In this case, I have to answer a question with a question by asking “How much is it currently costing you to not be composting?”
There are a lot of factors to consider in answering the ROI question. Let’s start with a few of the hard costs associated with manure management:
Are You Currently Paying for Off-Site Disposal?
If you are incurring a hard cost of off-site disposal, then it’s a simple matter of dividing the cost of a new compost system by the monthly disposal fee. For example, if it costs $15,000 to construct a 3-bin system and you pay $500/month in disposal fees, then your break-even is 30 months. On a horse farm, the compost system is one of the few opportunities to save money.
Do You Plan on Selling Your Compost?
Let’s say this same compost system generates 15 cubic yards (cy) per month of finished compost and you are able to sell it for $22/cy. Then your overall savings per month will be $500 + $330 = $830 and your break-even becomes 18 months. After 18 months, there will be a net gain of $830 to the revenue stream.
Are You Currently Turning Windrows?
If you are currently turning compost piles with your front-end loader, consider the amount of money that you are spending on fuel, equipment maintenance and your time. (I’ll let you do the math).
Pathogens, Parasites and Your Horse Health
In addition to the measurable costs associated with manure management, there are many other benefits that can be indirectly related to the cost of operating a farm.
Are pathogens and parasites a problem on your farm and how much money are you spending to maintain your horses’ health? Given that the heat derived in the composting process effectively destroys pathogens and parasites, your horses’ health will only improve and your vet bill will decrease with composting.
Flies, Rodents & Birds
Are flies, rodents and birds a nuisance? There may be a hard cost in trying to manage these vectors but, for people visiting the farm, these are factors that negatively affect the quality of the farm experience. In addition to being an annoyance to your horses, flies also represent a health issue that needs to be considered. An O2Compost System will resolve all of these issues.
Odors and Neighbor Complaints
One of the benefits that we often hear about from our clients after they install one of our compost systems is the lack of odor emanating from the “manure pile” and the decrease in complaints from neighbors. All organic materials produce some odor, but with aerated composting the off-gases are very mild and the ammonia is retained in the cover layer that is placed over the raw manure. As a result, there is virtually no odor at the property boundary.
Weed Seeds
Most horse feed includes a wide variety of weed seeds that pass through the horse and end up in the pasture. One way to deal with weeds is to use a broad leaf herbicide but, as you would expect, there is a cost of time and money associated with weed management. Composting resolves this cost impact – the heat in the aerated compost pile is high enough to render weed seeds harmless (i.e., non-viable).
The Aesthetics of the Farm
If you are operating a stable, renting out stalls and providing partial or full-care services, the aesthetics of your farm will likely affect the monthly fees that you are able to command. Your aesthetics will also determine (in part) your competitive advantage over other stables in your area. A compost system will help you maximize your aesthetic appeal – a dumpster out in front of your barn will not.
Environmental Compliance
Do you have a manure pile “out behind the barn” and if so, is it draining compost leachate into the groundwater or local streams? There is no real dollar cost associated with this type of pollution, but there is a cost to the environment. If this is the case, be prepared to receive a call one day from your county surface water department or local conservation district asking you to resolve the issue. Not often, but on occasion there are penalties to pay if the problem is serious. This problem is quite solvable with an O2Compost System.
Given all of these variables, I can now turn the question around to you and ask, “What’s your Return on Investing in an O2Compost System?”
|
